Friday, February 29, 2008

the finer points of investing

Last night I met with Janet for awhile to go over the investment details. It turns out that the way I'm structuring the Disembody deal flies in the face of standard Hollywood contracts.
Go figure.

The way I'm trying to structure it is that from any moneys made from sales of artworks or from distribution or sale of the film:

1) Crew, with the exception of me, get any deferred wages. That is, much of the crew understands that if we don't reach our goal of $30,000+ in investments, they will have to be paid their $100/day down the line. They will be paid this money before anyone else is paid anything.

2) After crew are paid, every penny goes to paying off investors' initial investment, so that their risk is as limited as I can possibly make it. In a sense this structures their investment as an odd loan, in some ways.

3) I recoup any personal moneys I invest.

This will take us to a break even point for all involved.

After this the investors receive 2% of profit for every $1,000 invested.

Fringe and 23E Studios split the remaining money down the middle. The goal I'd like to hit is coming in at a $30,000 production, giving Fringe 20% and 23E Studios 20% of the profit. However, if we go over budget (with a maximum budget under any circumstances of $40,000), then Fringe and 23E split the remainder.

23E's share is then split evenly between all the crew, including myself. 23E won't actually keep any moneys.
Except, of course, my money and 23E's money are pretty much identical at this point, since we decided against an LLC and 23E Studios is, for now, Lee Pembleton dba 23E Studios.

Anyway, boring details of production.
Tomorrow I meet with Janet again to go over this in more detail. I'll spare you.



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